#TradingPairs101
š Choosing the Right Trading Pair Matters
Understanding trading pairs is key to smarter trading. Each pair consists of a base asset (what youāre buying or selling) and a quote asset (what youāre pricing it in). For example, in BTC/USDT, BTC is the base and USDT is the quote.
Personally, I prefer stablecoin pairs like USDT or BUSD. They make it easier to measure gains, manage risk, and avoid volatility when exiting trades. But sometimes, crypto-to-crypto pairs offer better opportunitiesāespecially when rotating between strong altcoins.
Before entering any trade, I consider liquidity, spread, and market sentiment. I also look at the pairās trading volume to avoid unnecessary slippage.
One time, trading an altcoin in a BTC pair during a dip hurt my position because both assets dropped. If I had used a stablecoin pair, I couldāve protected more of my capital.
ā Pick your pair wiselyāit can make or break your strategy.